(Corrects paragraph 1 to say govt will announce spectrum
auction, not auction the spectrum, on Monday)

July 7 (Reuters) - The Canadian government is expected to
announce an auction of prime spectrum on Monday, a move that
will eventually force smaller carriers to better compete with
larger companies such as Bell Canada, Rogers
Communications Inc and Telus Corp, the Globe
and Mail reported.

The auction of "AWS-3 spectrum" is planned to take place
ahead of an offering of 2,500 MHz frequencies scheduled for
April 2015, the Globe and Mail said.

The AWS-3 spectrum is more valuable than the 2,500 MHz
variety because it functions well in both urban and rural areas
and signals penetrate buildings better.

In AWS-3 auction, the set-aside spectrum will be restricted
for purchase by small players that are already operating in the
region where they seek to buy more frequencies, the newspaper
reported. (bit.ly/1m8fuOR)
(Reporting by Ashutosh Pandey in Bangalore)